What is meant by the term assemblage in real estate?

Assemblage in real estate refers to the process of combining two or more adjoining lots into one larger lot. This practice can often lead to a higher value for the combined property compared to the individual parcels when sold separately. The principle behind assemblage is rooted in the concept of highest and best use, where bringing together multiple lots can create a more valuable development opportunity, maximize land use, or enhance the overall functionality of the property.

When lots are combined, it can allow for larger scale developments that couldn't have been constructed on smaller, individual parcels. Assemblage is often used in urban planning and development scenarios where higher densities or larger projects are desired. Understanding this concept is crucial for appraisers as it directly influences property valuation and market analysis. Through successful assemblage, stakeholders can potentially increase the overall marketability and economic return of the property involved.